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Do³±czy³: 10 Mar 2024
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 Wys³any: Nie Mar 10, 2024 08:03 Temat postu: Improvement operations of fixed assets |
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On the other hand, letter f) of the rd registration and valuation standard provides that “the costs of renewal, expansion or improvement of the property, plant and equipment will be incorporated into the asset as the greater value of the property to the extent that they represent an increase of its capacity, productivity or extension of its useful life, and the accounting value of the elements that have been replaced must be derecognised.” Index Treatment of repair and improvement operations of fixed assets Conclusion Treatment of repair and In this sense, the Resolution of March , , of the Institute of Accounting and Audit of Accounts, which establishes standards for the registration and valuation of tangible assets and real estate investments, regulates the treatment of repair operations, conservation, renewal, expansion and improvement of tangible assets: “ Repair and conservation of property, plant and equipment.
Repair" is understood to be the process by which an immobilized asset is returned to operating Buy Bulk SMS Service condition. “Conservation” aims to keep the asset in good operating condition, maintaining its productive capacity (…). Renewal of property, plant and equipment. The "renewal of fixed assets" is the set of operations through which the initial characteristics of the asset being renewed are recovered (...). Expansion and improvement of property, plant and equipment. "Expansion" consists of a process through which new elements are incorporated into an asset, resulting in greater productive capacity.
Improvement" is understood as the set of activities through which an alteration is produced in an element of fixed assets, increasing its previous productive efficiency. The assessment criteria applicable in the described processes will be the following: a) In order for the costs of an extension or improvement to be allocated as a higher value of the fixed assets, one or more of the following consequences must occur: Increase in its production capacity, Substantial improvement in your productivity, or Extension of the estimated useful life of the asset.
The increase in value of the asset will be established in accordance with the acquisition price or production cost of the expansion or improvement. c) In particular, the costs of developing a piece of land will be accounted for as the highest value if the costs incurred by the company meet any of the requirements set out in letter a), even when the company had been established prior to the when the proceedings begin.
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